In 2016 Tim Whelan was appointed CEO of Wireless Telecom Group, Inc. (NYSEMKT:WTT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tim Whelan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Wireless Telecom Group, Inc. is worth US$35m, and total annual CEO compensation is US$570k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$288k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$418k.
As you can see, Tim Whelan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Wireless Telecom Group, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Wireless Telecom Group has changed from year to year.
Is Wireless Telecom Group, Inc. Growing?
On average over the last three years, Wireless Telecom Group, Inc. has shrunk earnings per share by 28% each year (measured with a line of best fit). It achieved revenue growth of 15% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Wireless Telecom Group, Inc. Been A Good Investment?
Wireless Telecom Group, Inc. has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Wireless Telecom Group, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
And while shareholder returns have been respectable, they have hardly been superb. So you may want to delve deeper, because we don’t think the CEO pay is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wireless Telecom Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.